Chocolate Company

Contents

Introduction 2


I. Environmental Market Analysis Overview 3


II. Competitor Analysis 4


III. Customer and Consumer Analysis 6

III.1) Influencing Factors of the Customer Buying Behaviour in the Luxury Chocolate Gift Market 6

III.2) Purchasing decision process 7

III.3) Critical Success Factors 8

III.4) Segmentation Analysis 8


IV. RECOMMENDATIONS 10

IV.1)Recommendations for the B2C market 10

IV.2) Recommendations for the B2B markets 10


Conclusion 12


Appendix 13

I. Enviromental Market Analysis (PEST Analysis) 13

II. ANALYSE OF BLOGGS' SITUATION (SWOT Analysis) 14


References 15
 
Introduction

Joseph Bloggs, who has just inherited the family chocolate company, was keen to make his mark on this business. How will he manageto build a sustained future growth for Bloggs?

Bloggs Chocolate Company are not only part of the Luxury Chocolate Market but are also part of the gift market. Bloggs chocolates are purchased for a number of reasons however the main reason why people or a company will buy a box of luxury chocolates is as a gift for someone or another company.

This report will firstly identify environmentalfactors in which pressure Bloggs customers and potential customers. It will explain how Bloggs will have to respond in order to keep up with market demands and the influencing factors in which manipulate the purchasing decision process of their customers and their potential customers.

The report will secondly recognise some of Bloggs main competitors, paying specific detail to the gift marketcompetitors not just the luxury chocolate market competitors.

Thirdly and most importantly the report will analysis in detail the customer and consumer behaviour and purchasing decision process not only in the B2C market but also in the B2B market in which hold a significant amount of existing trade and potential trade.

Finally we will identify are strategic marketing recommendations forboth the B2C market and the B2B market.



I. Environmental Market Analysis Overview

Bloggs chocolate are not just in the luxury chocolate market but are also in the Gift Market for consumers and businesses. Technology has increased this amount considerably and the need for the 'latest thing' as apposed to the most luxurious chocolate or the more traditional gifts i.e. flowers or wine.Although this has not reduced the luxury chocolate market it does show an increasing threat in which is coupled with the social cultural factors of modern healthy living.

The gift market accounted for $253 billion in 2004 worldwide and represents about 10% of the consumer economy. Gifting is a major reason to shop not only at seasonal times but also all year round. Christmas gifts account forabout 40% of a person's gift giving budget. * (3) Gift shopping is an 'emotional consumerism' * (4) People find a self of wellbeing when sending a gift and today's technological advances in distribution and delivery have enabled more people to be able to reach friends or family or business contacts with a 'pleasing gift'. A business gift can also encourage future business for both companies sendingand receiving the gift and is a popular method of communicating business to business.

The chocolate market as a whole in the UK has an estimated annual growth of 1.3% in the 2003-2008 period. However in comparison to later years the growth rate has declined slightly.*(5) However it is important that we understand that there are severe differences between to two main sections of the UKchocolate market. The major section is the confectionary chocolate in which the impulse purchasing is based around as apposed to the planned gift purchase of the smaller section of the luxury chocolate market.

The luxury chocolate market accounts for nearly 18% value share of the total chocolate market at an estimated £631 million in 2004. The volume sales of the luxury chocolate market are up by 21%...